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Estimating the Income and Substitution Effects on the Demand for Poultry Meat

Zainalabidin Mohamed and Roslan A. Ghaffar

Pertanika Journal of Tropical Agricultural Science, Volume 12, Issue 1, April 1989

Keywords: Poultry meat; demand; Slutsky equation; elasticity.

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This study attempts to analyse the factors underlying the demand and consumption trends of poultry meat in Malaysia. Specifically, it explores the poultry meat consumption due to changes in prices and income and the interaction in demand between poultry meat and the components of the rest of the meat market. To obtain the parameters of the demand model for poultry meat, two estimation techniques were used in estimating the demand model, namely single and instrumental variables approach, while Slutsky equations were utilized to estimate the income and substitution effects ofpoulhy meat with the other components of the meat market. Theresults indicate that poultry meat is a normal good while both beef and pork are substitutes to poultry meat. However, mixed results were obtained for poultry meat and fish. Based on the magnitude of the substitution effect and cross price elasticity, it is concluded that the demand for fish is independent of the other components of the meat market.

ISSN 1511-3701

e-ISSN 2231-8542

Article ID

PERT-0538-1989

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